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A. Arulanandam vs Sebi

Securities Appellate Tribunal8 June 2023Tarun Agarwala

Ratio decidendi

The rule this decision rests on

The amendment to Regulation 7(2)(a) of the SEBI (Prohibition of Insider Trading) Regulations, 2015 applies retrospectively, so that a penalty imposed for non-disclosure of trades under the unamended provision cannot stand where the controversy is covered by the Tribunal's earlier decision in Sudhir Bapusaheb Devkar v. SEBI, which held that retrospective application.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

BEFORE THE SECURITIES APPELLATE TRIBUNALMUMBAI

Date of Decision: 08.06.2023

Misc. Application No. 645 of 2023 And Appeal No. 483 of 2023

A. Arulanandam 5/756, 16 KCC Nagar, Backside Mullaivedan Nagar, SIPCOT, Hosur, Krishnagiri, Tamil Nadu- 635 126, India ...Appellant

Versus

Securities and Exchange Board of India, SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai- 400 051 ...Respondent

CS Rahul Sahasrabuddhe for the Appellant.

Mr. Manish Chhangani, Advocate with Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b The Law Point for the Respondent.

CORAM: Justice Tarun Agarwala, Presiding Officer Ms. Meera Swarup, Technical Member

Per: Justice Tarun Agarwala, Presiding Officer (Oral)

1.

For the reasons stated in the application, the delay in the

filing of the appeal is condoned. The application is allowed.

2. The Adjudicating Officer has passed an order imposing a

penalty of Rs.1 lakh for non-disclosure of the trades executed by 2 the appellants which was found to be in violation of

Regulations 7(2)(a) of the Securities and Exchange Board of

India (Prohibition of Insider Trading) Regulations, 2015

(hereinafter referred to as 'PIT Regulations').

3. In Appeal No.654 of 2022, Sudhir Bapusaheb Devkar v.

SEBI decided on 10th October, 2022 this Tribunal held that

amendment in Regulation 7(2)(a) of the PIT Regulations would

apply retrospectively.

4. The controversy involved in the present appeal is squarely

covered by the decision of this Tribunal. In view of the

aforesaid, the impugned order is quashed. The appeal is allowed

with no order as to costs.

5. This order will be digitally signed by the Private Secretary

on behalf of the bench and all concerned parties are directed to

act on the digitally signed copy of this order. Certified copy of

this order is also available from the Registry on payment of

usual charges.

Justice Tarun Agarwala Presiding Officer

Ms. Meera Swarup PRERNA Digitally signed Technical Member 08.06.2023 by PRERNA MANISH MANISH KHARE PK Date: 2023.06.09 KHARE 10:45:53 +05'30'

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